Saturday, July 13, 2013

Nature of investment as an asset



Assets may be classified as

Fixed asset

Current asset

Depending on the intention with which they are acquired. If the asset bought and sold frequently with the intention of making short term profits, they are trading investment or current investments. If investments are purchased with the intention of retaining for longer periods and the dividend or interest income is intended to be received for some years, the investment are long term investment or fixed investments.

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